Labour smoking ban slammed as 'simple lunacy' that will expose British high streets to migrant mafia gangs

But critics warn that any blanket ban would drive smokers to buy illegal black market tobacco.

That would, in turn, inadvertently fund organised crime on UK streets.

Lord Moylan told peers Britain was suffering from organised crime, similar to the United States.

"We have already lost control of our southern border to a highly organised business—a mafia that is engaged in people trafficking," he said.

"And that mafia is not just operating overseas but has a large operation in the United Kingdom, which is not disconnected to what is happening in our high streets with illegal cigarettes."

Lord Moylan said that banning everyone currently aged 16 from ever smoking would be impossible to enforce.

"Feeding the flames of that by an unenforceable generational ban is simple lunacy. Just as happened with prohibition in the United States, which gave the mafia life, we would encourage that by introducing this ban," he said.

The House of Lords Shadow Transport Minister argued that illegal tobacco was already rife in the UK.

Chancellor Rachel Reeves hiked the duty on cigarettes by two per cent above inflation at the last Budget.

She rolled tobacco by another 10 per cent, which has made it more expensive per gram than silver.

According to KPMG, illegal tobacco smoking had risen from 17.1 per cent of total tobacco consumption in 2020 to 25.6 per cent last year.

It found that inflows of illegal cigarettes had increased from 2.26billion to 3.41billion over the same period.

The illegal tobacco trade has hit the Treasury's coffers.

Duty-paid cigarette sales have plunged nearly 45 per cent since 2021 - from 23.6billion in 2021 to just 13.2billion in 2025.

The National Crime Agency launched Operation Machinize to tackle the challenge of illegal cigarettes.

Hundreds of thousands of illegal cigarettes have been seized from mini-markets across the UK under the operation.

A number of arrests have also been made.

Lord Moylan said it was not just about crime but "about the utter degradation of many of our high streets".

"High streets have been taken over by a series of illegal businesses purportedly selling vegetables and the occasional packet of cornflakes," he said.

"But actually engaged in the systematic sale of illegal cigarettes."

New Zealand had previously introduced the smoking ban for anyone born after January 1, 2009, after passing legislation in 2022.

However, it was scrapped in 2023 with the now-Government saying it would help fund tax cuts.

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